ABSTRACT:Traditionally, leadership was concerned with increasing the production and profits of the organization. But with the changing time, the traditional view of leadership is diminishing at a very fast pace. Most of the theorists of 21st Century are asserting that along with increasing the production and profit, a leader is also responsible for ensuring the standard of moral and ethical conduct. That means now a days a good leadership refers not only to competence of leaders, but also to ethical transformation of people.
The leaders of this century are not only responsible for influencing their followers to perform an action, complete a task, or behave in a specific manner but also for influencing process, stimulating change in subordinate’s attitudes and values, augmenting followers’ self-efficacy beliefs, and fostering the internalization of the leaders’ vision by utilizing strategies of empowerment. It is believed that the nurturing aspect of leaders can raise organizational cultures and employee values to high levels of ethical concern. Ethical leadership requires ethical leaders. If leaders are ethical, they can ensure that ethical practices are carried out throughout the organization. This paper has tried to raise the same issues and focused on how ethical leadership can contribute to the development of the organization.